§ 401. Reduction or suspension of benefits. a. If a retired member,
receiving a retirement allowance for other than physical disability,
returns to active public service, except as otherwise provided in this
section or sections two hundred eleven or two hundred twelve of this
chapter, and is eligible for membership in the police and fire
retirement system, he or she thereupon shall become a member and his or
her retirement allowance shall cease. In such event, he or she shall
contribute to the police and fire retirement system as if he or she were
a new member. Upon his subsequent retirement he or she shall:

1. Be credited with all member service earned by him or her since he
or she last became a member of the police and fire retirement system,
and

2. Received a retirement allowance which shall consist of:

(a) An annuity which is the actuarial equivalent of all his or her
accumulated contributions, and

(b) The pension including the
pension-providing-for-increased-take-home-pay which he or she was
receiving immediately prior to his or her last restoration to
membership, plus a pension including the
pension-providing-for-increased-take-home-pay based upon the member
service credit earned by him or her since he or she last became a
member. Such latter pensions shall be computed as if he or she were a
new member when he or she last became a member.

Where such member shall have earned at least two years of member
service credit after restoration to active service, the total service
credit to which he or she was entitled at the time of his or her earlier
retirement may, at his or her option, again be credited to him or her
and upon his or her subsequent retirement he or she shall be credited in
addition with all member service earned by him or her subsequent to his
or her last restoration to membership. Such total service credit to
which he or she was entitled at the time of his or her earlier
retirement shall be so credited only in the event that such member
returns to the police and fire retirement system with regular interest
the actuarial equivalent of the amount of the retirement allowance he or
she received, or in the event that such amount is not so repaid the
actuarial equivalent thereof shall be deducted from his or her
subsequent retirement allowance.

Notwithstanding the foregoing provisions of this subdivision, a
retired member who is receiving a retirement allowance for other than
physical disability, and who returns to active public service, may elect
not to be restored to membership in the police and fire retirement
system until he or she has rendered one year of service following his or
her return to public service. In such event his or her retirement
allowance shall be suspended during such year of service as provided in
subdivision b of this section. Upon restoration to membership following
completion of such year of service, his or her service in such year
shall be deemed to be service while a member for purposes of subdivision
b of section three hundred sixty of this chapter. He or she may purchase
member service credit for such year, which shall be deemed earned member
service credit. This paragraph shall not be construed to authorize the
return to public service of any person who is otherwise not eligible
therefor on account of having reached age seventy.

If a retired member receiving a retirement allowance for other than
physical disability, returns to active public service, and is then
ineligible for membership in the police and fire retirement system, his
or her retirement allowance shall be suspended in the same manner as
provided in subdivision b of this section.

b. Temporary service.

1. The payment of any retirement allowance, or any benefit in lieu
thereof, on account of retirement for other than physical disability
shall be suspended as provided herein, during the time that the
beneficiary thereof is in receipt of other compensation paid from direct
or indirect state or municipal taxes:

(a) For temporary government or temporary public service other than
jury duty, or

(b) For service pursuant to subdivision c of this section where the
retired member continues as a beneficiary of the police and fire
retirement system.

2. In the case of a retirement allowance, without option, the amount
of the pension portion, including the
pension-providing-for-increased-take-home-pay, suspended for any period
shall be equal to the amount of such other compensation for the same
period.

3. In the case where an optional benefit in lieu of a retirement
allowance without option shall have been selected, the pension portion
thereof, including the pension-providing-for-increase-take-home-pay,
shall be suspended in such manner as the comptroller shall approve. The
amount so suspended shall be equal to the actuarial equivalent of the
amount by which the pension portion of the retirement allowance,
including the pension-providing-for-increased-take-home-pay, as it would
be without option, would be suspended pursuant to paragraph two of this
subdivision b. The retired member, however, may pay to the fund or funds
from which the pension portion of his retirement allowance, including
the pension-providing-for-increased-take-home-pay, is payable the
difference between the suspended portion thereof, without option, and
the suspended portion of the optional pension portion of the retirement
allowance, including the pension-providing-for-increased-take-home-pay,
granted to him. In such event any payments to his beneficiary shall be
made as if no suspension occurred.

4. In the case of a member whose compensation for public service is
equal to or greater than his final salary as defined herein, the annuity
portion of his retirement allowance shall be suspended during the period
that he is receiving such compensation. In the case of a member whose
compensation for public service is less than his final salary as defined
herein and who has retired without option, he shall be entitled to
receive that portion of his annuity computed without option which, when
added to his compensation for public service, does not exceed the
aforesaid final salary. Where an optional benefit has been selected in
lieu of a retirement allowance without option, the amount of the annuity
suspended shall be the actuarial equivalent of the amount that would
have been suspended if the retirement allowance had been without option.
In such a case the retired member may pay to the fund or funds, from
which the annuity portion of his retirement allowance is payable, the
difference between that portion of the annuity which is actually
suspended, in accordance with the provisions of this paragraph, and the
corresponding portion of the annuity without option.

In such even any payments to his beneficiary shall be made as if no
suspension occurred. The term "final salary", as used in this paragraph,
shall mean the maximum salary or compensation which the retired member
currently would be receiving in the position from which he last retired,
if he had not so retired. If the position from which he was so retired
has been abolished the comptroller, upon the basis of salary or
compensation currently paid in similar or comparable positions, shall
determine the maximum amount of salary or compensation which the retired
member currently would be receiving in the abolished position.

The provisions of this subdivision c shall be controlling
notwithstanding any other provision of this chapter.

c. Election or appointment of retired members to certain public
offices.

1. A retired member, unless otherwise disqualified, shall be eligible
to:

(a) Election to a state office, or

(b) Appointment to fill a vacancy in an elective state office.

2. In the event a retired member is so elected, except a retired
member so elected and who is receiving less than ten thousand dollars in
retirement allowance or benefit payments in any one year, or appointed
or so qualifies, he may:

(a) Upon written notice to the comptroller, receive from the police
and fire retirement system the then present value of the annuity earned
by his or her accumulated contributions, and upon receipt thereof cease
to be a beneficiary of the police and fire retirement system, or

(b) Continue as a beneficiary of the police and fire retirement
system, but with payments of any retirement allowance or any benefit in
lieu thereof, on account of retirement for other than physical
disability, suspended during the time he or she is in receipt of
compensation for state or public service. Such suspension shall be
governed by the provisions of paragraphs two, three and four of
subdivision b of this section.

3. The provisions of subdivision one of section one hundred fifty of
the civil service law shall govern with respect to state and local
elective public officers.

d. Privilege of certain retired members, retired for other than
physical disability, to undertake public employment.

1. Notwithstanding any inconsistent provisions of this section or of
section one hundred fifty of the civil service law the provisions of
this section shall be suspended to the extent necessary to permit a
retired member to continue as such and to earn not to exceed eighteen
hundred dollars per calendar year as compensation in any position of a
temporary, seasonal or occasional nature in government service or public
service, provided he duly executes and files with the comptroller a
statement that he elects to have the provisions of this subdivision f
apply to him, and:

(a) His retirement allowance, computed without optional modification,
does not exceed thirty-five hundred dollars per year, or

(b) His retirement allowance, computed without optional modification,
exceeds thirty-five hundred dollars per year and he annually waives that
portion which is in excess of thirty-five hundred dollars by duly
executing and filing with the comptroller a waiver of the aforesaid
excess portion. The waiver shall be irrevocable during the calendar year
in which it is filed.
A statement of election executed and filed pursuant to this subdivision
f may be withdrawn by a retired member at any time by a statement
similarly executed and filed.

2. The privilege granted by this subdivision f, to retired members to
continue as such and to earn compensation in positions of a temporary,
seasonal or occasional nature in government service or public service
shall remain in full force and effect until July first, nineteen hundred
sixty-five.